Greater risk of tax audits for low doc loan users
The Tax Office says as many as 100,000 people with “low-doc” home loans are now at risk of tax audits. A survey of borrowers by the Tax Office found half of those borrowers with low doc loans were not paying tax. Tax Commissioner Michael Carmody said some of those taking out this style of home loans were engaged in “substantial understatement of income”. Low doc loans now account for 10 per cent of home lending.